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When do you receive option premium?
You receive option premium when you sell an option contract to another investor. The premium is the amount of money you receive upfront for taking on the obligation of the option contract.
How are option premiums taxed?
Option premiums are taxed as either short-term or long-term capital gains, depending on how long the option is held. Short-term gains are taxed at ordinary income tax rates, while long-term gains are taxed at lower capital gains rates.
Does Capitol One offer a premium finance option?
No. This premium finance option is usually handled by another company. Capitol One does not lend funds for insurances such as life, etc. This is not the purpose of Capitol One. It is not a premium finance company.
Can you pay a one time fee for a life insurance policy?
Generally, most insurers do offer an option by which you can pay the entire premium at once. This is usually called, appropriately, "single pay". This is not applicable on all life policies.However, in most Ulip policies, Single Premium or one-time premium option is there. Specially in conventional policy, where single premium option is there, you gain by way of paying lesser amount in comparison to consolidated regular premium amount.
Which of these is the best description of term insurance. purchased for a set premium cost with the option of paying in more?
purchased for a certain time period with a specific premium cost
When do you receive option premium?
You receive option premium when you sell an option contract to another investor. The premium is the amount of money you receive upfront for taking on the obligation of the option contract.
How are option premiums taxed?
Option premiums are taxed as either short-term or long-term capital gains, depending on how long the option is held. Short-term gains are taxed at ordinary income tax rates, while long-term gains are taxed at lower capital gains rates.
Is the seller of the option retains the option premium whether or not the option is expired?
Yes, as soon as the option is sold on the open market to a buyer, the seller immediately receives and retains the option's premium. This premium is kept regardless of the action of the market or the buyer. In the event the option expires worthless, the premium becomes profit for the seller, or in contrast, the premium can be used to help offset loss if the seller decides to close the position and buy back the option. It is important to note, however, that the premium received remains in escrow and cannot be used in any capacity until the risk taken on by the trade is eliminated in due course by either the expiration of the option, or the buy back of the position.
What are the two factors depend on expiration?
Expiration depends on the option premium and the intrinsic value. The option premium is the price paid for the option contract, while the intrinsic value is the difference between the current stock price and the strike price of the option.
What is a good alternative to Don Julio 1942 for a premium tequila option?
A good alternative to Don Julio 1942 for a premium tequila option is Clase Azul Reposado.
Is an employer stock option incentive taxable income?
They are not taxable. Stocks are not taxed based on your income. They are taxed by region or where you may live. That is why these stocks are not taxable.
Does Capitol One offer a premium finance option?
No. This premium finance option is usually handled by another company. Capitol One does not lend funds for insurances such as life, etc. This is not the purpose of Capitol One. It is not a premium finance company.
Does a insurance disability issue a w2?
The insurance carrier will issue a 1099 with your disability income if it is subject to taxation. The benefit is taxed if you paid the premium pre-tax, or if your employer funded a portion of the premium.
When must a long call option be sold to collect the premium?
Whenever you want. You collect the premium at the time you sell the call.
Can you pay a one time fee for a life insurance policy?
Generally, most insurers do offer an option by which you can pay the entire premium at once. This is usually called, appropriately, "single pay". This is not applicable on all life policies.However, in most Ulip policies, Single Premium or one-time premium option is there. Specially in conventional policy, where single premium option is there, you gain by way of paying lesser amount in comparison to consolidated regular premium amount.
Which of these is the best description of term insurance. purchased for a set premium cost with the option of paying in more?
purchased for a certain time period with a specific premium cost
What happens when you sell a put option?
When you sell a put option, you are agreeing to buy a specific stock at a predetermined price (the strike price) if the option buyer decides to exercise the option. In exchange for selling the put option, you receive a premium from the buyer.
